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Arnie Teams With 4 Lenders to Hold Off Foreclosures

Posted Nov 21, 07 6:47 PM CST in Business,  US 

(Newser) – Four big lenders in California have agreed to extend low-interest mortgage rates to homeowners on the brink of foreclosure, the San Francisco Chronicle reports. The lenders worked with Gov. Schwarzenegger on the deal, which will apply to subprime borrowers who have made payments on time so far but will be unable to do so when the rates jump.

"We can save tens of thousands of people from being added to the foreclosure lists," Schwarzenegger said. The program’s duration is up in the air, but it's meant to last through the current crisis, even several years, said a lenders’ rep. It’s not just a deal for consumers, one mortgage exec said: Foreclosures are expensive for lenders, too.

Source San Francisco Chronicle

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A home is advertised for sale at a foreclosure auction in Pasadena, Calif., Tuesday, Aug. 14, 2007. (AP Photo/Reed Saxon)   (Associated Press)
California Governor Arnold Schwarzenegger holds a news conference to promote alternative fuel vehicles Thursday, Nov. 15, 2007, at the Los Angeles Auto Show. (AP Photo/Ric Francis)   (Associated Press)
California Gov. Arnold Schwarzenegger laughs during a speach to the Silicon Valley Leadership Group in San Jose, Calif., in this Nov. 2, 2007, file photo. (AP Photo/Paul Sakuma)   (Associated Press)
Moderator Lewis Feldman, left, Partner, Los Angeles office, Goodwin Procter LLP, listens as Angelo Mozilo, projected on screen, Chairman and CEO, Countrywide Financial Corp. speaks during a panel discussion...   (Associated Press)
A home is advertised for sale at a foreclosure auction in Pasadena, Calif., Tuesday, Aug. 14, 2007. (AP Photo/Reed Saxon)   (Associated Press)
The foreclosure epidemic has hit California hard.   (Getty Images (by Event))
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California • subprime mortgages • foreclosure • Arnold Schwarzenegger • interest rate • Countrywide Financial


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